SKYWEST INC reported second-quarter 2026 results with revenue rising to $1102.8M while net income and diluted EPS declined year over year to $100.7M and $2.54, respectively, as higher fuel and pilot training costs weighed on profitability despite stronger flying activity.
Financial Highlights
- Revenue was $1102.8M, compared with $1035.2M in the prior-year quarter; YoY change 6.5%.
- Net income was $100.7M, compared with $120.3M in the prior-year quarter; YoY change (16.3%).
- Diluted EPS was $2.54, compared with $2.91 in the prior-year quarter; YoY change (12.7%).
Business Highlights
- Revenue growth was driven by higher block hours and increased prorate demand; flying agreements revenue rose about 7.8% quarter over quarter, contributing to total operating revenue growth of 6.5% year over year.
- Channel mix remained weighted to capacity purchase agreements at roughly 81.9%, while prorate and charter revenue jumped about 38% on more flights and passengers.
- Fleet additions and modernization: SKYWEST added seven E175s year to date and plans to add more than 34 E175s through 2028, alongside conversions of CRJ200s to CRJ450s to enhance dual-class offerings.
- Operational utilization improved with block hours up 5.4% and departures up 2.3% in the quarter, and higher scheduled utilization plus increased prorate flying lifted activity.
- Cost pressures from higher fuel expenses and increased pilot training materially reduced segment profits despite revenue gains.
Original SEC Filing:
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